Russia Adopts Cryptocurrencies in Oil Trade to Bypass Sanctions

Russia is using cryptocurrencies in its oil trade with China and India to evade Western sanctions, according to sources cited by Reuters. Although Russia passed a law last year allowing the use of cryptocurrencies in international trade, this is the first reported case where Bitcoin, Ethereum, and stablecoins like Tether are being used in oil transactions.

This method allows Russian companies to convert yuan and rupees into rubles through cryptocurrencies, avoiding financial restrictions imposed by the United States. Currently, the volume of oil transactions conducted through cryptocurrencies is small but growing and could become a significant part of Russia’s energy trade.

The strategy follows the example of Iran and Venezuela, two countries that have already used cryptocurrencies to bypass Western financial sanctions. Meanwhile, sanctions imposed on Russia’s oil industry seem to be losing effectiveness, as several sanctioned oil tankers have resumed operations, according to Bloomberg.